In the country there are multiple specialized companies that offer their home appraisal services; in the case of banks they have their list of authorized appraisers, when evaluating clients with mortgage applications.
An appraisal is an official report whose purpose is to calculate the value of a property or the rights held over it; it must be carried out by experts belonging to an appraisal company, who must comply with a series of rules that will indicate who is qualified to do it and how.
In the Dominican Republic, the entity that groups them is the Dominican Institute of Appraisers (ITADO), and their regulation is the responsibility of the Superintendency of Banks, which in its article 68 on the valuation of guarantees, asset evaluation regulations, establishes the following:
“The guarantees must be valued at market price, that is, at realizable values, carried out by an independent appraiser or an employee of the financial intermediation entity, when applicable, for which they must follow the following guidelines:
A) For guarantees constituted on securities, the valuation must be carried out monthly and be supported by methodologies recognized in the international financial field, approved by the Superintendency of Securities, to an authorized price provider or any other source of fair value measurement, in accordance with international best practices, that uses observable data so that the securities have a reference market price;
B) In the case of guarantees established on real estate intended for commercial use, carry out at least every 24 (twenty-four) months, a new appraisal or use the amount of the insured value by an insurance company, duly authorized by the Superintendency of Insurance; and,
C) In the case of guarantees established on real estate intended for housing, the amount of the value insured by an insurance company, duly authorized by the Superintendency of Insurance, will be used.
In the country there are multiple specialized companies that offer their home appraisal services; in the case of banks they have their list of authorized appraisers, when evaluating clients with mortgage applications.
Factors that influence the valuation
- Environmental characteristics: location, proximity to leisure centers, parks, sports facilities and means of transport.
- Property surface area and layout: size of the property, layout and number of rooms.
- The state of conservation of the property and its age.
- Building architecture: access, common areas, elevators.
- Building construction characteristics: construction materials used, installations, finishes, heating, air conditioning.
Types of appraisals
The appraisals will be classified according to their purpose.
- For financial institutions: To apply for a mortgage, home insurance, or a bank guarantee.
- For legal procedures: inheritances, divorces, mergers and acquisitions of companies, real estate sales and judicial appraisals.
- For insurance companies: assessments of the damage that the property may have suffered and any deficiencies that the building may present.
